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to samsung others in the smartphone market. apple has not commented on the report. >> the legal maneuvering in washington is being watched very closely in sacramento. >> when governor brown announced that his 2013 budget showed a surplus, many were surprised. today taylor stood by a report of a $2 billion deficit, but added. >> the budget is in balance. >> reporter: the governor's plan shows fiscal discipline. >> we think he should be commended for the plan that he's put before the legislature. >> living within our means, paying town debt, and strengthening education are the right policy choices for california, and we're pleased that the analyst agrees with the governor's assessment. the biggest risk to our forecast or the analysts forecastcom could come as early as next months, and that's from washington d.c. and what the federal government chooses to do or not to do regarding the debt ceiling. >> reporter: he said if washington fails to act on the debt creel, the national economy could dip, throwing all of the numbers off. >> that's going to have a very significant effect on revenues in
of samsung's offerings, and what apple is offering with the iphone have closed a little bit. i think that's closing in on the cost deferential. >> i like the droid personally. it works. i have a 4g. it's thin, the screen is bigger. >> reporter: many have larger screens and lower price points and have some consumers seeing android as the new hot product, with iphones being old news. >> kind of like it's over. i hear that conversation at the gym. a lot of people seem to be more about wanting to use the droid. >> i think apple really does need to talk about what it's price point strategy is going to be for the iphone going forward. >> reporter: there have been some speculation that apple would release a lower priced iphone later this year, but the ceo did not address that in this conference call. jana katsuyama, ktvu, channel 2 news. >>> another silicon valley company, netflix reported an unexpectedly big profit today. the news sent shares up 33% to $137. the company's own executive said 4th quarter earnings exceeded even their own expectations, not to mention wall street's. meantime, wall s
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